Re: QUESTION on credits at closing… - Posted by Sue (NC)
Posted by Sue (NC) on January 28, 1999 at 20:55:34:
I guess I wasn’t as clear as I should have been…
The closing statement WILL show these items as an credit to the buyer even here in NC (which has the net affect of reducing the downpayment required). But the assumption is that the buyer transfers those funds to an escrow account after closing, instead of mingling those funds with his own money until a tenent moves out.
Many other states (roughly half, but I’m looking at 1995 stats) have similar requirements that tenent security deposits be held in escrow. Some go as far as to expect the landlord to pay interest on the money. And even if the state does not mandate escrowing deposits, the municipality might. And many states that do not require escrow of funds still make it clear that the money belongs to the tenant until any damages occur.
With landlords losing more and more each year, I wouldn’t be suprised if the number of states requiring escrow accounts for tenant security deposits were on the rise.